The Importance of Understanding
Your Nexus Exposure

Simply put, when you conduct business in a state, you might create “nexus.”

As a result, states are now allowed to include remote sales as criteria for creating substantial nexus, even if a business has no form of physical presence in a state. By merely having sales into a state, economic nexus can now be created. 

Every state has different thresholds and requirements for collecting sales tax. If you make sales into multiple states where you have nexus but don’t collect, you could be considered non-compliant and face hefty penalties and fines.

Economic Nexus Calculator

calculator on desk with money

How to Use the Calculator

It’s easy! Consider the states where you generate revenue from customers. The assessment will have you provide the following information:

  1. States where you had sales transactions in the previous year
  2. Prior year’s sales revenue and transaction counts

What You’ll Receive

A private landing page with your economic nexus analysis results. The page will feature a list of the low, medium, and high-risk states where you likely have nexus, as well as information about each state’s economic nexus thresholds.

About This Calculator

This free economic nexus analysis tool shows you where your business may have a requirement to collect and remit sales tax.

This report does not constitute tax advice. There is additional information that your company may need to consider when determining how sales tax should be collected (e.g., physical nexus, PPLT). To learn more about state-by-state sales tax nexus rules and collection requirements, visit our Wayfair v. South Dakota resource page. For information on conducting a comprehensive economic nexus analysis, visit here.

How We Can Help?

At Source Advisors, our team of experienced CPAs, attorneys, engineers, and technology experts helps companies save money and create cash flow with R&D tax credits that can help drive overall growth.